7 December 2025
A federal jury has found Braden John Karony, the former founder of SafeMoon, guilty on all counts in a crypto fraud case that bilked millions from investors under false promises of safe decentralized finance. Following a 12-day trial in Brooklyn on May 21, the jury found Karony guilty of conspiracy to commit securities fraud, wire fraud, and money laundering.
Prosecutors allege that Karony misled investors about SafeMoon’s escrow pools of liquidity, while secretly accessing and draining the funds to buy luxury homes and vehicles. Now, Karony faces up to 45 years in prison. The jury also ordered the forfeiture of about $2 million in real estate related to the scheme. A verdict is expected later this year.
Meanwhile, accomplice Thomas Smith has already pleaded guilty and is awaiting sentencing, while Kyle Nagy, the third alleged participant, is still on the run. In the meantime, the SafeMoon project has been taken over by the community, who have transformed it into a memecoin.
Karony and his accomplices launched SafeMoon in March 2021, pitching it as a secure DeFi token with a self-supporting liquidity mechanism. They claimed that a 10% tax on each transaction would reward holders and bolster market liquidity by funding escrow pools. In reality, Karony retained full access to these liquidity pools, from which he funneled millions of dollars into his personal accounts.
With the stolen money, he bought a $2,2 million home in Utah, several properties in Kansas, two Audi R8s, a Tesla, and customized trucks. As U.S. Attorney Joseph Nocella aptly put it:
“Karony didn’t build a safe financial product — he created a pipeline for theft. He plundered investors’ funds and used them to fill his garages and fund his lifestyle.”
Agents from the IRS-Criminal Investigation, the FBI, and Homeland Security Investigations traced the misappropriated assets through a web of pseudonymous wallets and central exchange accounts.
The IRS-CI and its cyber and J5 task forces followed the digital trail and uncovered how Karony laundered the funds. They worked with global law enforcement partners from Australia, Canada, the Netherlands and the UK to investigate this cross-border operation. kraken.
Harry T. Chavis, Jr., Special Agent in Charge of the IRS-CI said:
“Karony filled his driveway with sports cars while scamming millions. We tracked his crypto movements and exposed the scheme for what it was — outright theft.”
Furthermore, the FBI and HSI confirmed that Karony concealed his personal transactions of SafeMoon during peak prices, which earned him additional illegal profits, while assuring the public that insiders were not manipulating the token. “A real thorn in the side of the crypto community!” one might say. It is time to open our eyes and face the truths in this dynamic world of digital currencies.
What does this ruling mean for the crypto industry?
The ruling shows that the authorities are actively taking action against fraud in the crypto sector and that investors should remain vigilant.
What will happen to SafeMoon after these scandals?
SafeMoon has been adopted by the community and repositioned as a memecoin, showing that community involvement is crucial for the survival of such projects.
How can investors protect themselves from such fraud?
Investors must thoroughly research projects, demand transparency, and remain vigilant against over-the-top promises in the crypto space.
Bitcoin (BTC)
Ethereum (ETH)
XRP (XRP)
